Support a REAL bailout plan...

Here's the Birk plan that was forwarded to me today. It's based on the 85 billion dollar bailout for AIG, but the concepts could be equally applied to the current 700 billion plan that, unlike the AIG plan, is not a "loan". (Of course it doesn't stand a chance because it's fairer and makes more sense.)

Hi Pals,
>
> I'm against the $85,000,000,000.00 bailout of AIG.
>
> Instead, I'm in favor of giving $85,000,000,000 to Americans as a “We Deserve
> It Dividend.”
>
> To make the math simple, let's assume there are 200,000,000 bonafide U.S.
> Citizens 18+.
>
> Our population is about 301,000,000 +/- counting every man, woman and child.
> So 200,000,000 might be a fair stab at adults 18 and up..
>
> So divide 200 million adults 18+ into $85 billon that equals $425,000.00.
>
> My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.
>
>
> Of course, it would NOT be tax free.
>
> So let's assume a tax rate of 30%.
>
> Every individual 18+ has to pay $127,500.00 in taxes.
>
> That sends $25,500,000,000 right back to Uncle Sam.
>
> But it means that every adult 18+ has $297,500.00 in their pocket.
>
> A husband and wife team has $595,000.00.
>
> What would you do with $297,500.00 to $595,000.00 in your family?
>
> Pay off your mortgage - housing crisis solved.
>
> Repay college loans - what a great boost to new grads
>
> Put away money for college - it'll be there
>
> Save in a bank, banking crisis solved - create money to loan to entrepreneurs.
>
> Buy a new car - create jobs and end GM and Ford’s slump.
>
> Invest in the market - capital drives growth and Financial institutions would be saved.
>
> Pay for your parent's medical insurance - health care improves
>
> Enable Deadbeat Dads to come clean - or else
>
> Remember this is for every adult U S Citizen 18+ including the folks who
> lost their jobs at Lehman Brothers and every other company that is cutting
> back. And, of course, for those serving in our Armed Forces.
>
> If we're going to re-distribute wealth let's really do it...instead of
> trickling out a puny $1000.00 ("vote buy") economic incentive that is being
> proposed by one of our candidates for President.
>
> If we're going to do an $85 billion bailout, let's bail out every adult U S
> Citizen 18+!
>
> As for AIG - liquidate it.
>
> Sell off its parts.
>
> Let American General go back to being American General.
>
> Sell off the real estate.
>
> Let the private sector bargain hunters cut it up and clean it up.
>
> Here's my rationale. We deserve it and AIG doesn't.
>
> Sure it's a crazy idea that can "never work."
>
> But can you imagine the Coast-To-Coast Block Party!
>
> How do you spell Economic Boom?
>
> I trust my fellow adult Americans to know how to use the $85 Billion
>
> We Deserve It Dividend more than do the geniuses at AIG or in Washington DC.
>
>
> And remember, The Birk plan only really costs $59.5 Billion because $25.5
> Billion is returned instantly in taxes to Uncle Sam.

Uhhh...maybe. I just checked the math on this plan and it doesn't work out to 425,000 per adult. The most you can come up with is $3925.00 or so IF you add both the 85 billion and the 700 billion. So just like a politician, I'll keep this little correction embedded in the middle of the thread.

Well the math was off by a couple of zeros, but...

Originally Posted by dean_martin

Uhhh...maybe. I just checked the math on this plan and it doesn't work out to 425,000 per adult. The most you can come up with is $3925.00 or so IF you add both the 85 billion and the 700 billion. So just like a politician, I'll keep this little correction embedded in the middle of the thread.

That's still a lot of money for a whole lot of households. If that is taxed, at an average rate of 15%, then $1059.26 per household or $117,749,734,468.34 / ~$118B goes back to uncle Sam right away. That still leaves $6002.49 per household to spend on this coming x-mas holiday season, paying down debts, and yes, even buying new A/V gear. All these things will help the economy.

And for those households that won't consider this much money, they can still find comfort in knowing that despite the major correction inherent w/o a bail-out, all these companies will be for sale for a lot less. $6K will still buy a healthy share of blue chips if they are suddenly 1/2 of what they cost now: Visa @ $32 a share? Apple @ $66? Exxon @ $40? Google @ $220? If they buy in, that will also help the market recover.